Impact of online social media on consumers’ purchasing intention via social network sites

Hoang T. P. Thao, Nguyen L. T. Hoa. Journal of Science Ho Chi Minh City Open University, 8(2), 19-36 19 Impact of online social media on consumers’ purchasing intention via social network sites Hoang Thi Phuong Thao1*, Nguyen Le Thai Hoa2 1Ho Chi Minh City Open University, Vietnam 2Hoa Mai Trading Company, Limited, Vietnam *Corresponding author: thao.htp@ou.edu.vn ARTICLE INFO ABSTRACT DOI:10.46223/HCMCOUJS. econ.en.8.1.170.2018 Received: April 06th, 2018 Revised: May 06th, 2018 Accepted: May 14th, 2018 Keywords: attitude, purchasing intention, social e-word of mouth, social media, trust With the continuous development of the internet and e- commerce in Vietnam recently, there is much research on online purchasing behaviors through retail websites. However, there are few studies on consumers’ purchasing behavior via social network sites (SNS) despite a rapid increase in the use of such websites. This study, therefore, tries to build a research model describing (i) the impact of motivations of using SNSs on social e-WOM and (ii) the relationship among social e-WOM, consumers’ trust, attitude and purchasing intention via SNSs. After adjusting the measurement scales by a focus group’s discussion, a quantitative survey was executed using the data collected from 509 SNS users and by testing Cronbach’s Alpha reliability, EFA, CFA, and SEM to comment seven proposed hypotheses. The results showed that motivations of social media usage (utilitarian and hedonic) had positively impacted on social e-WOW, social e-WOW influenced positively consumers’ trust and attitude towards brands of goods/service on SNSs, and that both consumers’ trust and attitude had positive impacts on their purchasing intention. Accordingly, the study suggested some practical implications for managers to adjust their social communication strategies in the digital era. 1. Introduction The role of Social Network Sites is more and more important in human life since they support maintaining existing relationships and forming new relationships among internet users. Enterprises gradually realize the potentials of social network sites as online social media to observe, analyze, connect, provide knowledge and collect consumers’ responses. Some previous research emphasized the importance of social media on consumers’ behaviors (Diffley, Kearns, Bennett, & Kawalek, 2011; Ertemel & Ammoura, 2016; Forbes & Vespoli, 2013; Shaheen & Lodhi, 2016) and the effect of social e-word of mouth on consumers’ purchasing intention (Kavoura & Stavrianeas, 2015; See-To & Ho, 2014; Seraj, 2011). 20 Hoang T. P. Thao, Nguyen L. T. Hoa. Journal of Science Ho Chi Minh City Open University, 8(2), 19-36 However, these studies only focused on qualitative results and simple descriptive statistics but failed to build up the research framework for describing the influence of social media dimensions on consumers’ purchasing decision-making process. In Vietnam, social media and online consuming behaviors are emerging issues and there have been no specialized studies on this issue yet. Some previous research investigated the acceptance behavior of users of SNSs such as Facebook, Zalo, Viber and Youtube and pointed out several benefits made to the community by SNSs. In other words, motivations for consumers to use SNSs lie in the benefits made by themselves. Previous studies by Vietnamese researchers (Hoang & M. T. T. Nguyen, 2017; Hoang & Phan, 2017; T. T. Nguyen & Hoang, 2017) haven’t demonstrated why such motivations lead to participation of e-word of mouth and online purchasing intention via social networking sites. Additionally, it is necessary to study the relationship between social media and consumers’ purchasing behaviors because consumers’ trust and attitude towards goods/services advertised on SNSs may play a positive role in directing consumers’ purchasing intention. This paper, therefore, aims to determine: (i) the impact of motivations of using social media on social e-WOM, and (ii) the relationships among social e-WOM, consumers’ trust, attitude and purchasing intention on SNSs. The research results may have a theoretical contribution to the social media role in consumers’ purchasing decision-making process and reflect the social media role in the online buying environment in a developing country like Vietnam. 2. Literature review and research model 2.1. Main concepts Social network sites (SNSs) are defined as web‐based services that allow individuals to (1) construct a public or semi‐public profile within a bounded system, (2) articulate a list of other users with whom they share a connection, and (3) view and traverse their list of connections and those made by others within the system (Amichai-Hamburger & Hayat, 2017). Social media (SM) is a media channel on SNSs created for everyone to contact, exchange ideas, share information, emotion, picture and video, etc. With strong interaction capacity, social media is considered as an effective channel for digital marketing (APPNET, 2016). Social media and Social network sites need to be differentiated in terms of two basic media elements: content production and content distribution. Social network sites referred to a group of members and their interaction whereas Social media referred to the form of content production and distribution. Therefore, Facebook, Instagram, LinkedIn, Zalo, Viber, or YouTube are not Social media by themselves because they do not produce nor distribute but they provide a platform for bloggers to create and convey information. Motivations of social media usage Based on the theory of Uses & Gratifications, previous researchers have discovered several issues about consumers’ usage of social media. Such research has mentioned both utilitarian and hedonic dimensions to discover usage motivations (Hyllegard, Ogle, Yan, & Reitz, 2011). Utilitarian motivations depict the use of media channels for utilitarian, necessary Hoang T. P. Thao, Nguyen L. T. Hoa. Journal of Science Ho Chi Minh City Open University, 8(2), 19-36 21 and effective decision-making processes while hedonic motivations imply media using behavior for fun, happiness, inspiration, emotion and comfort (Chin, Lu & Wu, 2015). The main benefits of hedonic motivations are experience and emotion and utilitarian motivations are completion of product purchase and its ownership. Social electronic Word of Mouth (Social e-WOM) WOM was defined as non-commercial word of mouth among acquaintances (Arndt, 1967). Nowadays, WOM takes a new communication form, electronic WOM. According to Henning-Thurau, Gwinner, Walsh, and Gremler (2004), e-WOM is positive or negative comments from old, existing and potential customers about a product or a company through the internet. Social e-WOM is communication process among consumers via SNSs and become one of the most common digital media based on the existing e-WOM including webinars, social networks such as Myspace, Facebook, Youtube, Twitter, LinkedIn and so on, to provide consumers with relevant information through personal connection (Chu & Kim, 2011; Ellison & Boyd, 2013; Seraj, 2011). SNSs act as an effective means for e-WOM among consumers and serve as sources of information and opinions about goods/services. SNSs have changed the way consumers making their decisions because consumers are easy and fast to exchange their information and opinions through personal address/account without limited time and place (Mangold & Faulds, 2009). Considering the popularity of SNSs, social media marketing based on e-WOM become an important part of brand communication strategies for online firms (Chu & Kim, 2011). Consumers’ trust toward goods/service on SNSs Delgado-Ballester and Munuera-Alemán (2001) defined trust as perception about security based on the belief of persons’ behaviors so long as such behaviors come from the motivations bringing positive results for their partners. In the e-commerce context, consumers will rely on the brand of goods/services on social e-WOM to assess their perception level of safety when they are directed by e-WOM information on SNSs. Consumers’ trust is really important in the virtual communication context because it helps reduce uncertainty and risk and brand trust influences positively purchasing intention toward this brand (Chang & Chen, 2008; Pavlou & Gefen, 2004; Pavlou & Fygenson, 2006). Consumers’ attitude and purchasing intention toward goods/service on SNSs According to the Theory of Planned Behavior (TPB) introduced by Ajzen (1991), human attitude toward behaviors, subjective norms and perceived behavioral control will direct personal intention to form behavior afterward. The attitude toward goods/services was defined as consumers’ overall evaluation of a goods/service (Mitchell & Olson, 1981). The evaluation included a positive or negative response to the reliability of a brand. A positive attitude toward a brand of goods/service from this evaluation not only creates consumers’ continuous likeliness but also impacts positively their purchasing intention (Kudeshia & Kumar, 2017). 22 Hoang T. P. Thao, Nguyen L. T. Hoa. Journal of Science Ho Chi Minh City Open University, 8(2), 19-36 In the e-commerce context, behavioral intention is defined as consumers’ willingness to develop some behaviors such as goods/ service recommendation, price sensitivity, appraisal or complaint, purchase or repurchase, loyalty, positive or negative word of mouth through the internet (Kudeshia & Kumar, 2017; Schivinski & Dabrowski, 2014). If consumers’ purchasing behavioral intention is positive then their thoughts and behavior toward goods/service purchases are also positive. 2.2. Hypotheses development and research model The link between motivations of using social media and social e-WOM SNSs provide the background for individuals with the same interest to share knowledge and ideas and boost the development of social e-WOM (Brown, Broderick, & Lee, 2007). Consumers can read, click “Like” and comment on products and create positive or negative e- WOM. In the external information searching process, consumers make efforts to get product information to meet their needs. However, the needs and hobbies among consumers are not homogeneous, then the best source of information consumers can obtain is from other consumers with the same interests and hobbies. Getting product information from other consumers will help minimize the uncertainty of purchase (Prasad, Gupta, & Totala, 2017). Therefore, arousing positive word of mouth on the social network is one of the reasons for firms to sponsor the development of the social network community. SNSs’ benefits motivate consumers to use and to be attracted to participate in e-WOM (T. T. Nguyen & Hoang, 2017). Some motivations of using social media, such as utilitarian and hedonic, may influence the ‘LIKE’ click in the social e-WOM (Chin et al., 2015). Thus, two hypotheses are proposed as follows: H1a: The utilitarian motivation for using social media positively impacts social e-WOM. H1b: The hedonic motivation for using social media positively impacts social e-WOM. The link among social e-WOM, consumers’ trust and attitude toward goods/service brands Urban, Amyx, and Lorenzon (2009) concluded that online trust overpasses the fear of the invasion of privacy and safety in the virtual environment. Customers are learning from the experience of buying and using products, which leads to trust and raise positive attitude toward online shopping. Consequently, positively social e-WOM incurred the trust toward goods/services that consumers intend to buy. In their research, Panahi, Watson, and Partridge (2015) stated that building online trust was a challenge because the nature of the online community is open and incognito. However, online trust can be built uptime due to personal relationships. Chevalier and Mayzlin (2006) proved that social e-WOM was an important tool for customers to obtain information about goods/services and considerately reduce consumers’ awareness of uncertainty and risk (Chatterjee, 2001). Moreover, the product information through e-WOM from a reliable person will make the receiver feel more trustworthy even the receiver has not yet used the product (Kavoura & Stavrianeas, 2015). Ying and Chung (2007) indicated that positive e-WOM stimulated a positive attitude and influenced purchasing intention. Furthermore, a positive message of e-WOM from reliable Hoang T. P. Thao, Nguyen L. T. Hoa. Journal of Science Ho Chi Minh City Open University, 8(2), 19-36 23 reference sources leads to a better attitude toward a brand than those of unreliable sources (Wu & Wang, 2011). T. T. Nguyen and Hoang (2017) showed that the information adopted through e-WOM helped enhance brand trust in Vietnam tourism. From arguments on the relationship between social e-WOM and consumers’ trust, and social e-WOM and consumers’ attitude toward a brand, the hypotheses H2 and H3 are suggested as follows: H2: Positive social e-WOM positively influences consumers’ trust toward brands of goods/services on SNSs. H3: Positive social e-WOM positively influences consumers’ attitudes toward brands of goods/services on SNSs. The link among consumers’ trust, attitude and purchasing intention on SNSs Previous studies confirmed that attitude was a strong determinant of behavioral intention and played a very important role in forming behaviors (Ajzen, 1991; Ajzen & Fishbein, 2005; Kang, Johnson, & Wu, 2014). Moreover, the evaluation based on experience and emotion in the virtual environment has very strong influences on consumers’ purchasing decisions (Dabholkar, van Dolen, & de Ruyter, 2009; Y. Lee & Kozar, 2009). The marketing theory on the relationship between commitment and trust also stated that trust was an important mediator between determinants and behavioral results (Morgan & Hunt, 1994). The increase of trust would come up to a favorable attitude toward online purchases as well as positively impact consumers’ purchasing intention (Pavlou & Fygenson, 2006). Recent research also stated that online trust was the mediator website dimensions and consumers’ purchasing intention (Benedicktus, Brady, Darke, & Voorhees, 2010; Kudeshia & Kumar, 2017; Prasad et al., 2017). Drossos, Giaglis, Lekakos, Kokkinaki, and Stavraki (2007) asserted that trust strongly influenced consumers’ attitudes toward brands of goods/services and was an important predictor of consumers’ purchasing intention. The trust of brands was likely to affect positively consumers’ response toward the advertisement on SNSs (Prasad et al., 2017). Several scholars also considered trust as a contextual and conditional variable, playing a mediating role more than a direct factor affecting purchasing behavior (Alsad, Mohamad, & Ismail, 2017; Langfred, 2004; See-To & Ho, 2014). In addition, Hoang and Phan (2017) found that one of the main elements given by social network selling platforms affecting consumers’ purchasing intention on SNSs is the reliability of sellers. From the above discussion, three hypotheses depicting the link among trust, attitude and behavioral intention toward brands of goods/service on SNSs are as follows: H4: Consumers’ trust positively impacts their attitude toward brands of goods/services on SNSs. H5: Consumers’ trust positively impacts their purchasing intention toward brands of goods/services on SNSs. H6: Consumers’ attitude positively impacts their purchasing intention toward brands of goods/service on SNSs. 24 Hoang T. P. Thao, Nguyen L. T. Hoa. Journal of Science Ho Chi Minh City Open University, 8(2), 19-36 Figure 1 shows the proposed research model that represents the seven suggested hypotheses Figure 1. The proposed research model 3. Research methodology The study used a mixed model of both qualitative and quantitative methods with the quantitative method as the key. The qualitative research used focus group (n=11 participants including 4 students, 3 office staff and 4 managers with ages ranging from 20 to 42, 4 males and 7 females and at least year experience of SNSs) to explore new indicators to adjust and complete the constructs in the research model. The quantitative research applied the survey of consumers who usually use SNSs with convenience sampling. A sample of 550 respondents was targeted and a total of 528 questionnaires were completed with a high return rate of 96%. Invalid and uncompleted questionnaires were rejected, resulting in 509 valid answer sheets. Table 1 shows that the research sample was balanced with the gender (female: 48.3% and male: 51.7%). The age group of 18-25 years old accounted for the most with 53.2%, the next were 26-35 and 36-45 year-old groups with 21.4% and 20.0 % accordingly. This implied that the youth liked using social media to interact, connect or purchase things on SNSs. Almost 85% of respondents had a monthly income below VND15 million and were mainly college and university degree holders (59.1%). In sum, this sample represents the population of young users on SNSs. Table 1 Respondents’ profile Characteristics Frequency Percent (%) Accumulative percent (%) Female 246 48,3 48,3 Male 263 51,7 100 Age 18-25-year-old 271 53,2 53,2 26-35-year-old 109 21,4 74,7 36-45-year-old 102 20,0 94,7 H1a H2 Trust toward brands on SNSs H5 Social e-WOM H4 Buying intention toward goods/service brands on SNSs H1b H3 Attitude toward brands on SNSs H6 Hedonic motivation of using SM Utilitarian motivation of using SM Hoang T. P. Thao, Nguyen L. T. Hoa. Journal of Science Ho Chi Minh City Open University, 8(2), 19-36 25 Characteristics Frequency Percent (%) Accumulative percent (%) 46-60-year-old 21 4,1 98,8 > 60-year-old 6 1,2 100,0 Family status Single 205 40,3 40,3 Dating 88 17,3 57,6 Married, no children 108 21,2 78,8 Married, some children 108 21,2 100,0 Monthly income (VND) < 5 mils. 215 42,2 42,2 5-10 mils. 158 31,0 73,3 10-15 mils. 59 11,6 84,9 15-20 mils. 18 3,5 88,4 20-25 mils. 13 2,6 91,0 25-30 mils. 22 4,3 95,3 > 30 mils. 24 4,7 100,0 Education High school - vocational school 67 13,2 13,2 College - University 301 59,1 72,3 Postgraduate school 141 27,7 100,0 Occupation Students 208 40,9 40,9 Non-government officers 96 18,9 59,7 Managers 48 9,4 69,2 Teachers 38 7,5 76,6 Government officials 47 9,2 85,9 Sellers 31 6,1 91,9 Workers 18 3,5 95,5 Common labors 17 3,3 98,8 Others 6 1,2 100,0 Total 509 100,0 Source: The researcher’s data analysis The scale of Utilitarian Motivation (UMOT) has 5 items (from MOTI01 to MOTI05) and Hedonic Motivation (HMOT) has 3 items (from MOTI06 to MOTI08), inherited from the research of Chin et al. (2015), Prasad et al. (2017), and Rapp, Beitelspcher, Grewal, and Hughes (2013) and one new item from the result of focus group. Social e-WOM includes 4 items (from EWOM01 to EWOM04) adapted from the research of Goyette, Ricard, Bergeron, and 26 Hoang T. P. Thao, Nguyen L. T. Hoa. Journal of Science Ho Chi Minh City Open University, 8(2), 19-36 Marticotte (2010), Jalilvand, Esfahani, and Samiei (2011), and Mangold and Faulds (2009), and one new item (EWOM05) from the focus group discussion. Trust toward goods/service on SNSs (TRUS) has 4 items developed from Connolly and Bannister (2007), See-To and Ho (2014) and one new item was added. Attitude toward goods/service on SNSs (ATTI) has 3 items inherited from the previous studies of Abzari, Ghassemi, and Vo